Council Tax Reduction UK: How to Get Up to 100% Off Your Council Tax Bill

Council Tax Reduction (sometimes called Council Tax Support) can reduce your council tax bill by up to 100%.

Yet millions of people who qualify don’t claim it.

According to GOV.UK, you could be eligible if you’re on a low income or claim benefits, and your bill could be reduced by up to 100%.

If you’re struggling to pay your council tax, this guide will show you exactly how to claim Council Tax Reduction.

Council Tax Reduction UK

What Is Council Tax Reduction?
Who Can Claim Council Tax Reduction?
How Much Council Tax Reduction Will I Get?
How to Apply for Council Tax Reduction
Council Tax Reduction and Universal Credit
Pension Age vs Working Age Schemes
When Council Tax Reduction Starts
Reporting Changes
Other Council Tax Discounts
What If I’m Refused?
Getting Help with Council Tax Arrears
Final Thoughts

What Is Council Tax Reduction?

Council Tax Reduction is a discount on your council tax bill for people on low incomes or receiving benefits.

It’s administered by your local council, not the Department for Work and Pensions.

You can apply if you own your home, rent, are unemployed or working.

How much you could get:

Up to 100% off your council tax bill, depending on:

Your income
Your savings
Your circumstances
Which council area you live in

Who Can Claim Council Tax Reduction?

You may be eligible for Council Tax Reduction if you’re on a low income or claim certain benefits.

You can claim if:

You’re on Universal Credit
You’re on other benefits (JSA, ESA, Income Support)
You’re working but on a low income
You’re unemployed
You’re a pensioner on a low income
You’re a carer

You will normally not qualify if you have savings or investments of more than £16,000.

How Much Council Tax Reduction Will I Get?

There’s no set amount of Council Tax Reduction. What you get depends on your circumstances and where you live. Each local council operates its own Council Tax Reduction scheme, so the amounts of support given across the country may vary.

Factors that affect your reduction:

Your income (and your partner’s if you have one)
Your savings
Number of people in your household
Whether you get disability benefits
Whether you’re a carer
Your council’s specific scheme

Examples:

If you’re on “passported benefits” (Universal Credit with no earnings, Income Support, income-based JSA or ESA), you usually get the maximum reduction your council offers.

Around 21% of local authorities in England made changes to the way they calculate Council Tax Reduction for 2025/26, so check your local council’s scheme.

How to Apply for Council Tax Reduction

Apply to your local council for Council Tax Reduction.

Step 1: Find your local council’s application

Google “[your council name] council tax reduction” or go to your council’s website.

Step 2: Gather information

You’ll need:

Your National Insurance number
Partner’s NI number (if you have a partner)
Details of income (yours and your partner’s)
Details of savings
Details of people living with you
Rent/mortgage details
Council tax account number

Step 3: Apply online or by phone

Most councils let you apply online. Some accept phone applications.

Step 4: Provide evidence

Your council will ask for proof:

Benefit award letters
Payslips
Bank statements
Rent agreement
ID

Step 5: Wait for a decision

Processing timescales vary – some councils are currently processing applications submitted from 7 October, so allow several weeks.

Council Tax Reduction and Universal Credit

If you claim Universal Credit, you should also claim Council Tax Reduction separately.

Universal Credit does NOT include help with council tax.

You must apply to your council for Council Tax Reduction as well as claiming UC.

Pension Age vs Working Age Schemes

There are two types of Council Tax Reduction schemes:

Pension Age (if you or your partner have reached State Pension age):

National scheme
Usually more generous
Can get up to 100% reduction

Working Age (under State Pension age):

Each council sets its own rules
May have a minimum payment (e.g. you must pay at least 10-25%)
Varies significantly by area

When Council Tax Reduction Starts

Your Council Tax Reduction usually starts from the Monday after your council receives your application.

Backdating:

Back-dated Council Tax Reductions are only available to people who have reached the qualifying age for state pension credit. We will automatically consider a backdate request of up to 3 months.

Working age claimants usually can’t backdate, so apply as soon as possible.

Reporting Changes

You must tell your council if your circumstances change:

Change in income
Change in benefits
Someone moves in or out
Change in rent
Change in savings

You must let us know about a change in circumstances as soon as possible and within one month of when the change happened. Failure to do so could result in an overpayment or reduction, which will have to be repaid, and your claim may be cancelled.

Other Council Tax Discounts

Even if you don’t qualify for Council Tax Reduction, you might get other discounts:

25% single person discount: If you live alone, you automatically get 25% off.

50% discount: If only one adult lives in the property and others are “disregarded” (students, carers, people with severe mental impairment).

100% exemptions:

All students
The property is empty due to certain circumstances
Annexes occupied by elderly/disabled relatives

If you live with someone who has a severe mental impairment, they’ll be disregarded and you’ll be treated as the sole occupant for Council Tax purposes.

What If I’m Refused?

If your Council Tax Reduction application is refused or you get less than expected:

Ask your council to explain the decision
Check if they’ve used the correct information
Ask them to reconsider if the information is wrong
Get free advice from Citizens Advice if needed

Getting Help with Council Tax Arrears

If you already owe council tax and can’t pay:

Contact your council immediately:

Explain your situation
Ask for a payment plan
Apply for Council Tax Reduction now (it won’t cover arrears but will reduce future bills)

Get free debt advice:

StepChange: www.stepchange.org
National Debtline: www.nationaldebtline.org
Citizens Advice: www.citizensadvice.org.uk

Council tax is a “priority debt” – courts can send bailiffs or take money from your wages if you don’t pay. Get help quickly.

Final Thoughts

If you’re on a low income or benefits, check if you’re entitled to Council Tax Reduction.

It could save you hundreds or even thousands of pounds per year.

Don’t assume you won’t qualify. The schemes are complicated and vary by area. It’s worth applying.

Apply to your local council today. The worst they can say is no.

How to Apply:

GOV.UK Council Tax Reduction
Contact your local council directly
Citizens Advice – Free help

Last updated: October 2025

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